About

John E Edwards
ABN: 14 554 943 783

John Edwards some 23 years ago founded Residex Pty Limited. During 2011 and 2012 he sold his and the family interests in the company to Onthehouse Holdings Limited a publicly listed company. That company intends to expand the business and has a major focus on providing quality information to the public via www.OnTheHouse.com.au

However, John still acts as a consultant to the group and actively participates in the technology and product decisions. His unique skills and knowledge are difficult to replace.

John is basically a financial engineer with a very lateral mind which allows him to be inventive. This inventive lateral thinking mind allowed him to ensure Residex led all its competitors and even with limited capital it was a force to be reckoned with. 

Before he established Residex he was a merchant Banker with BT Australia and the National Australia Banking group for some 15 years where he was a Senior Manager Corporate Banking.  He was responsible for structuring and negotiating Leveraged Leasing transactions and making recommendations to the Board and Management about transactions the Banks were arranging and participating in.

In his capacity as the Senior Manager he was responsible for arranging some billions of dollars in transactions and these transactions  financed aircraft for parties like QANTAS, East West Airlines,  Singapore Airlines, Westfield Holdings and shipping leases for Howard Smith Limited, plus car manufacturing plants for companies like GMH, Gas Pipe Lines for AGL and many more.

In 1988 and 1989 John became involved in trying to fund public housing for the New South Wales Government. The task was all but impossible in that Government at any cost wanted to fund some $100 million of new housing stock but didn’t want it on balance sheet and wanted to access tax benefits that were only available to private investors. John invented and wrote effectively the first house price swap between inflation and house prices. The transaction was implemented but the cost was high due to the unique nature of the swap and a tax ruling that denied the investors the benefit of depreciation.

A better way had to be found and it was reasoned that a bond linked to house price inflation provided the answer. To implement the bond a robust house price index had to be developed. The National Australia Bank was not interested in the development of the index and so John formed Residex to undertake the research and provide funding for public housing.

Residex entered an arrangement with Government to access historical sales data and John and his then founding partner in Residex Mr Dean Dwonczyk undertook the required work and developed the Repeat Sales Index and produced the first robust capital city index in late 1990.

Residex found funding and placed a further $200 million for public housing in the early part of the 1990’s.

The ATO again caused a problems for the private funding of the Public Housing Stock via the release of Division 16E which made it impossible to attract investors to the bond that Residex had invented. The Tax office was reacting to aggressive tax structuring then existing around negative type gearing of index linked bonds. The Tax Office was not working to stop the housing index bond but that instrument was caught up in the legislative changes.

At this point John’s lateral mind came into play. He could close up shop or use the information and research gathered to take the business into a different area. Mr Dwonczyk decided it was all too hard and departed for England with his new English wife leaving John to see what could be made of a business with no clear future direction.

There was a realisation by John that one could predict property values statistically given the accuracy of the index with expected errors attached. Residex developed a relatively crude Automated Valuation Model and released it to the market and in particular Westpac in 1993. Residex had a new path. The rest is history and the achievements of Residex are well known. The products which came form this inventive mind are:

–          The data systems provided to real estate agents and perhaps most don’t realise,  John coined the words Comparative Market Analysis (CMA) which is so widely used today and in fact it was Residex which released one of these reports first into the market:

–          The reports which help people identify the right price for a property and the provision of recent sales data to the public. Today it is very clear that the Right Price Report that Residex releases is without doubt the best of its type and provides the most accurate and detailed information available. However, John is a person who understand numbers and hence the reports will not be simply pages of pictures. They will be pages of numbers and meaningful useful statistics;

–          The predictive growth reports which have resulted in very significant numbers of people making very substantial amounts of money. These reports are non- subjective and provide help and if used correctly it is unlikely that poor decisions will be made;

–          The rental reports and the most notable among these was the Best Rent Report which was released for Residex’s 15th Anniversary. This report remains absolutely unique in the market and presents the best balanced rent and growth suburbs in the market:

–          Perhaps the most significant and world changing invention came early in Residex’s life when John realised that given the statistical research and methods that had been developed it was possible to identify the value of a property unseen and provide with that value an expected error. The Automated Valuation Model (AVM) was borne. It was very early in 1992. With the significant help of Dan Liebke a statistician Residex released the first AVM software package to the Commonwealth Bank and Westpac. Since then many have tried to copy the Residex AVM but in testing of the various systems by one of the Mayor Banks based in Melbourne (ANZ) it is constantly shown that the method developed by Residex is significantly better than all others;and

–          Following on from the AVM Residex developed a Rent AVM and that model is still the only one of its type in Australia and is used by a major bank.

Today February 2013 as John winds back his involvement with Residex, he takes with him some other inventions which he will seek to implement given the little extra time he has. The major two inventions relate to:

–          A real estate game which is known as FantasyRealEstate. The game suite has been developed and the game should be operational by no later than 1st April 2013. You can play the game at www.fantasyrealestate.com.au  If you are clever and learn from what John advises via Max then you could win up to $400,000. However, John warns it is more difficult than we all think so there are smaller prize pools for the ordinary player ranging from $500 all the $400,000 ;and

–          A mortgage system that ensures housing is affordable and the next generation will be able to have security of tenure in a property they want to live in. The system is the subject of a Patent John holds and is totally unusual. Over the next year or two John will endeavour to take this product to market and locate suitable investors. The best aspect of this mortgage structure is that it avoids mortgage stress and ensures a borrower knows what the maximum loan repayment is which is set at mortgage commencement. Generally, a home owner will not have a mortgage commitment that exceeds 26% of household income.

John’s very unique skills set is available to all today on a consulting basis. He is also a well known public speaker on the housing market and if you need a speaker to tell your special customers about what is happening in the housing market then he is available to help.

He will provide advice on housing and finance related matters to companies at both a Board and Executive level.

John holds a number of Board positions on private companies that operate in the housing market and he holds positions on housing investment strategy investment committees. In the past he has also been on advisory committees for governments.

John strongly believes that housing is the best, long term low risk asset class available. He is prepared to back this up with empirical evidence. He wants to help other establish themselves in the housing markets and as a consequence provides two 90 minute courses on how one should go about selecting a suburb to buy an investment property in and once that Suburb has been found how to locate the right priced property. To find out more about these courses go to the Tab Courses.

If you want to use John’s unique skill set:
send him an email:

johne_mobile@bigpond.com